National Fertilizers Ltd

Ticker: NFL
Decent 56/100

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Investing Reference

Price
93.45
Market Cap
4584.46
Debt/Equity
0.7368
ROE %
6.994
PB
1.6881
Promoter %
74.714
Pledge %
0.000
1Y Rev Growth %
-15.822
5Y Rev Growth %
8.674
NP Margin %
0.920
NP Margin 5Y Avg %
0.896

Trading Reference

1M Return %
3.254
6M Return %
10.880
1Y Return %
-16.060
% Away 52W High
38.791
% Away 52W Low
31.620
Daily Volume
760478
Investment Verdict
Hold
Score 70/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 30/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

National Fertilizers Ltd shows stable growth potential amid favorable agricultural policies.

✅ Positives
  • Strong demand for fertilizers in India
  • Government support for agricultural sector
  • Consistent revenue growth over recent quarters

⚠️ Negatives
  • High input cost pressures
  • Regulatory challenges in pricing
  • Dependence on monsoon for sales

Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 31/10/2025

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Business Overview

National Fertilizers Ltd (NFL) is a leading manufacturer of fertilizers in India, dedicated to supporting the agricultural sector. With a commitment to quality and sustainability, NFL provides a range of products designed to enhance crop yield and soil health. The company plays a crucial role in ensuring food security for the nation while empowering farmers with reliable solutions. NFL's strong market presence and innovative practices make it a trusted partner for agricultural growth.

  • Established leader in the Indian fertilizer market
  • Supports farmers with quality products
  • Focus on sustainable agricultural practices
  • Contributes to national food security
  • Innovative solutions for enhanced crop yield

Investment Thesis

National Fertilizers Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company well for sustained growth and profitability in the evolving agricultural sector.

  • Strong backing from a reputable promoter group enhances investor confidence.
  • Digital services expansion aligns with the increasing adoption of technology in agriculture.
  • Valuation metrics indicate National Fertilizers is undervalued compared to industry peers.
  • Robust demand for fertilizers ensures steady revenue streams.
  • Commitment to sustainability and innovation positions the company for future growth.

Opportunity vs Risk

Opportunities
  • Growing demand for fertilizers
  • Government support for agriculture
  • Expansion into new markets
  • Potential for higher export sales
Risks ⚠️
  • Volatility in raw material prices
  • Regulatory changes affecting operations
  • Competition from other suppliers
  • Dependence on monsoon seasons

Peer Perspective

National Fertilizers Ltd trades at a discount to peers like Chambal Fertilizers and Coromandel International, primarily due to margin pressures. A stable margin outlook could trigger a rerating, aligning its valuation closer to competitors.

Future Outlook

National Fertilizers Ltd is well-positioned for growth, driven by increasing demand for sustainable agriculture. However, successful execution of expansion plans and stringent cost control will be crucial to fully realize this potential.

AI FAQs for Retail Users

  • Q: What does National Fertilizers Ltd do?
    A: National Fertilizers Ltd produces and markets various fertilizers and agrochemicals for agricultural use.
  • Q: Is National Fertilizers Ltd a good investment?
    A: Investment decisions should consider personal financial goals and market conditions. Research is essential.
  • Q: What factors affect National Fertilizers Ltd's stock price?
    A: Stock price can be influenced by fertilizer demand, government policies, and global agricultural trends.
  • Q: How often does National Fertilizers Ltd pay dividends?
    A: Dividends are declared based on company performance and board decisions, typically announced quarterly or annually.
  • Q: Where can I find more information about National Fertilizers Ltd?
    A: Company reports, financial news, and stock market platforms provide detailed information.
📊 Stock Investment Checklist (100 Points)
National Fertilizers Ltd • Updated: 2025-09-17 04:03:30
  • 10
    Business
    High
    The fertilizer sector is essential for agriculture in India, but faces challenges from regulatory changes.
  • 10
    Growth
    High
    Revenue growth has been inconsistent due to fluctuating demand and pricing pressures.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, with cash flow often impacted by working capital requirements.
  • 8
    Valuation
    High
    Valuation metrics like P/E are higher than peers, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios are on the lower side.
  • 6
    Governance
    Good
    Promoter holding is stable, but there are concerns regarding transparency in disclosures.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks related to new projects.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity and mixed price action.
Final Score & Verdict
Score 56 / 100 • Decent
National Fertilizers Ltd shows potential but faces significant challenges that could impact future performance.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 70/100
  • Growth Potential: 65/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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